![]() And his annual earnings exceeded $12 million in 2011. But he remains one of the most public multi-level marketing success stories ever.Īt one point, his network included half of Amway’s total global distributors. Sometimes described as the “grandfather of network marketing,” Dexter Yager died in 2019. Amway’s top distributor of all time moved $2 billion of products through his network every year. You’ll probably come to the conclusion that you’re much better off trying to start your own business than wasting your time and money on MLM. Compare that with the available entrepreneurship stats. Less than 1% of participants ultimately turn a profit. In it, he makes a thorough analysis of multi-level marketing as a business opportunity. Taylor wrote the book The Case (for and) Against Multi-level Marketing. 99% of network marketing distributors lose money.Ī long-time president of the Consumer Awareness Institute, Jon M. But after operating expenses, even the best ended up losing money. The average gross profit for the distributors was $12,500. The Assistant Attorney General, Bruce Craig, looked at the top 1% of distributors in the state for that year. An investigation from 1980 revealed that even the top Amway earners were still losing money.Īccording to an FTC MLM report, the top 200 distributors in Wisconsin for Amway products lost $900 on average in 1980. Network Marketing Income Statisticsĭid you know that there is a 1% chance you won’t’ lose your money if you enter network marketing? For further marketing details and more cheerful yet educational statistics, please read on. By the mid-1860s, it was training young men to be door-to-door Bible salespeople. Tennessee-based Baptist minister James Robinson Graves founded the Southwestern Publishing House in 1855. ![]() To be fair, direct sales have been a sales strategy since the beginning of trade, as we know it-however, its first recorded use was in 1868. James Robinson Graves pioneered direct sales in 1868, selling Bibles. By the mid-1940s, it was marketing its products through the MLM model and operating as a subsidiary of Alticor, Amway’s parent company. Nutrilite is a global brand of dietary supplements developed in 1934 by Carl Rehnborg. ![]() Nutrilite became the first MLM organization when they created the network marketing concept in the 1940s.Īlthough some dispute this origin, most researchers agree Nutrilite was the first organization exclusively dedicated to multi-level marketing. However, Avon didn’t adopt the network marketing model until much later. McConnell, loved Shakespeare’s works and chose the name after the playwright’s birthplace. Originally called The California Perfume Company, Avon owes its name to the town of Stratford-on-Avon. Avon is the oldest MLM company - founded in 1886. History of Network Marketing Stats and Factsĭid you ever wonder how it all started while you were idly smelling the scented pages of your new Avon edition? It began in the 19th century, and here is what you need to know about it. Japan is the country with the second-largest direct sales workforce, with 3,300,000 distributors.Women make up 74% of the workforce engaged in direct selling in the US.The MLM industry in the US includes 36.9 million people under contract who don’t work on their business, either full-time or part-time.China, which reported over $4 billion in annual sales in 2013, is still Amway’s biggest market.50% of people who start participating in an MLM business abandon it within the first year.Igor Alberts and Andreea Cimbala, from the Netherlands, are the most successful network marketers globally.The multi-level marketing industry generated $189 billion in sales in 2017.Dexter Yager, Amway’s top distributor of all time, earned $12 million a year.To make money in network marketing, you need to be in the top 1% of distributors. ![]() Network marketing was introduced as a business model in the 1940s by Nutrilite.Top Ten Network Marketing Statistics in 2022 You Need to Know: Hopefully, these network marketing statistics will make you think twice before listening to another pitch about how much you can earn. Sure, there are success stories here and there, but those are the exception to the rule. The truth is, the MLM business model is often a poor investment and sometimes downright disastrous. And most of the time, they’re couched in upbeat and positive language that makes them sound like the best thing since sliced bread.īut the reality is altogether different. You’ve probably heard them all: multi-level marketing, pyramid selling, direct sales, and many other names.
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